PaySauce Quarterly Market Update – September 2021

PaySauce grows recurring revenue 44%
Lower Hutt, New Zealand - 12 October 2021
Employment fintech PaySauce (NZX:PYS) is pleased to report strong growth for
the quarter with recurring revenue up 44% year on year and 22% quarter on
quarter.
Total recurring revenue for the September 2021 quarter includes both PaySauce
processing fees and interest income, as well the new SmoothPay subscription
revenue recognised in the quarter. This is the first full quarter of activity since the
acquisition of SmoothPay on 31 May 2021.
Quarterly Recurring Revenue
FY22 Q2FY21 Q2Change
Jul - Sep ‘21Jul - Sep ‘20% YoY
PaySauce$724K$519K39%
SmoothPay (subscriptions invoiced
during the quarter)
$57K-N/A
Total Recurring Revenue (before
timing adjustments)
$781K$519K50%
SmoothPay timing adjustments
1
($34K)-N/A
Total Recurring Revenue (after
timing adjustments)
$747K$519K44%
Excluding the acquired SmoothPay business, processing fees from PaySauce
customers grew 45% YoY, the second consecutive quarter of accelerated growth,
following the 44% YoY increase in the quarter to June 2021. Interest Revenue was
down 20% YoY due to the significant decline in interest rates, however, an
increase from $31K in Q1 to $38K in Q2 marked the first quarter on quarter
increase in 12 months. The growth in processing fees has arisen from both a 38%
YoY increase in PaySauce customer numbers and a 48% YoY increase in the value
of payroll processed through the PaySauce platform compared to the September
2020 quarter.
1
A large proportion of SmoothPay’s subscription revenue is invoiced annually. To align with PaySauce’s
revenue recognition policies, annual subscriptions are spread evenly over the 12 month period. The timing
adjustments represent $39K of revenue to be recognised in future months, less $5K of revenue invoiced in
June, recognised in the July to September quarter.

CEO Asantha Wijeyeratne said that it’s been another strong performance off the
back of an incredibly busy quarter for PaySauce.
“We’ve added more than 300 customers to the PaySauce platform this quarter
while continuing to improve our product and provide the same levels of
incredible support to our customers.”
“I am also extremely pleased to share another incredible milestone for the
company - we processed more than $100M of payroll in the month of September
2021. To me, that’s a real testament to the development team for building a great
product and the support team for consistently delivering fantastic service.”
Payroll customers
as at 30 September
FY22 Q2FY21 Q2Change
Sep ‘21Sep ‘20% YoY
PaySauce4,2443,08538%
SmoothPay
2
1,367-N/A
Total Payroll Customers5,6113,08582%
2
SmoothPay customers employees totalled more than36,000.

Key Metrics
(PaySauce platform only)
FY22 Q2FY21 Q2Change
Jul - Sep ‘21Jul - Sep ‘20% YoY
# Employees as at 30
September
22,52716,11740%
# Payslips processed for the
quarter ended 30
September
169K117K45%
Gross value of payroll
processed for the quarter
ended 30 September
$286M$194M48%
KEY YEAR-ON-YEAR PERFORMANCE HIGHLIGHTS FOR THE QUARTER
●
PaySauce processing fee revenue up 45% YoY to $686K
●
Total recurring revenue up 44% YoY to $747K
●
Customers using the PaySauce platform up 38% YoY to 4,244
●
Total number of payroll customers up 82% YoY to 5,611

For more information about the quarter results to 30 September 2021, please contact
investor@paysauce.com .

ABOUT PAYSAUCE
PaySauce is a SaaS fintech platform providing solutions for people at work. We
give employers the technology to digitally onboard, pay and manage employees
from any device. Our platform includes rosters, mobile timesheets, payroll
calculations, banking integration, automated payments, PAYE filing, labour
costing, automated general ledger entries and digital employment contracts.
www.paysauce.com